Real estate in Canada is frequently used as a vehicle for criminals to launder illicit funds. Broadly speaking, they use the proceeds of their crimes to invest in properties. Their money is “washed” by taking mortgage loans, selling the properties to others or by being co-mingled with legitimate investor capital.
A 2018 report by the British Columbia Government stated that over $7 billion was laundered in the province that year. One of the impacts was increasing BC’s housing prices by 5%.
Banks, private lenders, investment firms and other real estate-based businesses can unwittingly be used to launder ill-gotten gains through property. Assadi Private Capital implements anti-money laundering measures to comply with applicable laws and to do our small part in combatting this pervasive issue.